• Memorandum of Understanding
• Joint Venture Agreement
• Franchise Agreement

1. Memorandum of Understanding

A Memorandum of Understanding (MoU) is a document in which two or more parties declare that they agree on a common course of action or business. It is the first stage of the making of a contract. An MoU is generally recognized as binding even though it creates no rights and obligations in itself. To be legally operative, an MoU must identify the contracting parties, spell out the subject matter of the agreement and its objectives, summarize the essential terms and must be signed by the contracting parties.

Advice on Requirements

We’ll help you find out what you need covered

Document Drafting

The first draft will be shared with you in four days

Two Iterations

We do two rounds of iterations at no extra cost

Advantages of an MoU

Covers Entire Relationship

The Master Service Agreement covers the entire relationship between service provider and customer, covering all aspects of the contract that are likely to arise. Such an agreement is beneficial to have in place before starting a long-term relationship with a vendor/customer.

Saves Time

It provides a framework to quickly negotiate agreements. Therefore, the same terms need not be repetitively negotiated for deals that are very similar to each other.

2. Joint Venture Agreement

A joint venture (JV) agreement is entered into by a group of persons or companies to do business together or to collaborate on a particular project without losing their individual legal identities. Such an agreement is legally binding and clearly lays down the areas of cooperation and divergence, and makes provisions for profit-sharing and operations. Usually, before entering into such a formal agreement, the parties sign a Memorandum of Understanding (MoU).

Advice on Requirements

We’ll help you find out what you need covered

Document Drafting

The first draft will be shared with you in four days

Iterations

We do two rounds of iterations at no extra cost

Advantages of a Joint Venture Agreement

Low Risk

A JV agreement allows you to do business with another party, while continuing to operate with your individual legal identity. Thus it is considered a low-risk option for sectors in which 100% FDI is allowed. JV agreements have been behind some of the biggest success stories in Indian business, such as Hero Honda, which was a JV between the Japanese Honda and the Indian Hero Motor Corp.

Access New Markets

A JV Agreement allows you to access newer markets and resources, and ensures the sharing of risk, without any of the disadvantages of operating as a single entity.

3.Franchise Agreement

A franchise agreement is an agreement wherein the franchisor agrees to lend the trade name or business system to another person or entity (the franchisee). The contract will define the basis of the arrangement between the two parties, specifying the consideration to be paid by the franchisee (partial payment is often in the form of royalties for the use of the franchisor’s trademark), how the brand name can be used, the length of the arrangement, and clauses dealing with penal provisions, ranging from fines and compensation to cancellation of the franchise.

Advice on Requirements

We’ll help you find out what you need covered

Document Drafting

The first draft will be shared with you in four days

Iterations

We do two rounds of iterations at no extra cost

Advantages of a Franchise Agreement

Sets Standards

A franchise agreement allows the franchisor to set a standard of quality with regard to the various aspects of a business before signing on the franchisee.

Brand Control

Through such an agreement, the franchisor can specify the way in which the franchisee uses the brand, including the penalties in case of violation of the rules.